Some see politics in city health care move

A week after her administration discovered an unexpected surplus in the city's health benefits fund and rolled back some co-pay hikes imposed earlier this year, Mayor Annise Parker also has softened increases to employees' health care insurance premiums, following strong complaints from the city's municipal workers' union.

In rescinding higher co-pays for specialists and some medications last week, Parker had said further changes pushed by the municipal union would wait until next year. On Friday, however, the mayor announced she would cut the increase in employees' health premiums.

The decision to drop the increase in premiums from 14.9 percent to 8.7 percent - the relief most sought by the Houston Organization of Public Employees - came the day before Parker and her challengers were to be screened by the union leadership in preparation for its announcement of its endorsements in this year's city races.

Parker spokeswoman Janice Evans said the change was driven by data showing claims on a slow decline, not the mayor angling for the union's support.

"She took another look at the data, and there were discussions all last week with (the municipal union) after they raised the concerns regarding the premiums," Evans said, adding consultants hired by the union to examine health costs were helpful. "It was determined we could go ahead and do it."

Julia Smekalina, spokeswoman for Parker's main challenger, Ben Hall, accused the mayor of playing politics with city policy.

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"Ms. Parker is the poster child of the term: 'No interest like personal interest.' Once again we see how Ms. Parker is quick to throw Houstonians under the bus to defend shortsighted policies," Smekalina said. "But when her political interests are in danger, she pretends to save the day. This is hardly leadership."

Change 'a blessing'

Earlier this year, the city plugged a $14 million projected deficit in its health benefits fund, and in May hiked health premiums and shifted more of the cost of care to workers.

Then, in recent weeks, city staff found an $18 million surplus in the same fund, and announced some jumps in co-pays for specialist visits, medicines and other care would be rescinded.

After July's collections and claims were tallied, the surplus was even larger, Evans said. The city's share of premiums, which covers three-quarters of plan costs, with workers covering one-fourth, also will increase 8.7 percent effective Sept. 1, she said, down from 14.9 percent.

City staffers have said an aggressive wellness program targeting preventative care, now in its third year, made costs hard to predict as claims jumped when ailments were diagnosed and treated, then leveled off as workers' conditions improved.

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Isaiah Monroe, a municipal union board member, called the premium change "a blessing." Monroe also praised the planned reduction in co-pays for specialist visits, saying $100 a pop simply was not possible for many workers; that fee will drop to $60 on Sept. 1.

"Most of us are at levels to where it's hard to just make the basic ends meet, and having this reduction is really going to help," Monroe said. "We're real thankful that the administration decided to go ahead and do the right thing regarding our health care. It's hard to have insurance that you're paying for and then not be able to afford to go to the doctor."

Employee 'rejoicing'

Monroe said employees have been discussing who the union should endorse for mayor this year, but he said the "rejoicing" following Friday's premium change will be just one factor.

"It's very positive, but we're wise enough to keep things in perspective," Monroe said. "It will be given just weight in our endorsement decisions."

Councilman C.O. Bradford, who has endorsed Hall, said he is "gravely concerned" at the health care cost estimates the Parker administration has produced.

"We need to make sure we have this surplus. If we do have a surplus and the employees have paid more than they need to pay, I think a reduction in premiums is the right thing to do," he said. "Unfortunately, it looks like it took (Houston Organizaton of Public Employees) as an employee union going in twisting some arms, flexing some muscle before the right thing was done."

Councilman Jack Christie said the timing of the premium reduction does not bother him.

"Look at is as a good, supportive move instead of a political move," he said. "There are times when I make a decision and then I think, no, I can make a better decision when I see the real numbers. Give her credit for that."